Semiconductor sales to reach $ 522 billion in 2021

With the ongoing pandemic and chip shortages still making headlines, semiconductor revenues totaled $ 464 billion in 2020 and will exceed $ 522 billion in 2021, according to IDC. Despite widespread shortages, chip sales will rise further this year as more devices become smarter and more chips are consumed overall. Fueled by home work and education, computing is expected to be the primary driver of growth as each PC uses dozens of chips, many of which are made using advanced process technology. Meanwhile, chip shipments for smartphones, consumer electronics and automotive applications will also be strong.

Global semiconductor revenue grew 10.8 percent last year to $ 464 billion and will grow another 12.5 percent this year to $ 522 million due to growth in semiconductors. consumer, IT, 5G and automotive drivers, according to a new report from IDC. Chip shortages will continue through 2021, but as the industry moves to more expensive chips for a wide variety of applications, semiconductor sales are set to grow again.

PC and server semiconductors topped the overall chip market and grew 17.3% year-over-year to $ 160 billion in 2020. Several factors drove PC chip sales and servers to new heights. The demand for PCs has increased quite dramatically over the past year, leading to shortages. Meanwhile, processors and GPUs are made using sophisticated manufacturing technologies and therefore are rather expensive. Finally, supply constraints have allowed manufacturers to further increase the prices of their products. IDC predicts that sales of computing semiconductors will grow 7.7 percent to $ 173 billion in 2021.

“Demand for PC processors remains strong, particularly in value-oriented segments,” said Shane Rau, vice president of research, Computing Semiconductors. “The PC processor market looks strong in the first half of the year and probably throughout the year.” IDC predicts that IT systems revenue will grow 7.7 percent to $ 173 billion in 2021.

Smartphone chips have been a major semiconductor revenue driver for about a decade, as the handset market has grown rapidly. Last year, smartphone unit shipments fell 10%, but as new 5G devices use more expensive SoCs and more chips in general, smartphone semiconductor revenue rose 9.1% d year after year. IDC estimates that mobile phone chip sales will increase 23.3 percent in 2021 to $ 147 billion.

“2021 will be a particularly important year for semiconductor vendors, as 5G phones capture 34% of all mobile phone shipments, while 5G phone semiconductors will capture nearly two-thirds of segment revenue,” said Phil Solis, research director for connectivity and smartphones. Semiconductors.

Chips for consumer electronics totaled $ 60 billion in 2020, up 7.7% year-over-year as sales of devices such as game consoles, tablets, wireless headsets, smart watches and set-top boxes were strong.

“New game consoles from Microsoft and Sony, continued strong sales of portable devices from Apple and the rise of smart home networks managed by Amazon Alexa and Google Assistant will accelerate growth in 2021 to 8.9% d ‘year over year, “said Rudy Torrijos, research director, Consumer Semiconductors.

Shipments of chips for automotive applications resumed in the second half of 2020, but many automotive semiconductors are currently out of stock, a situation that will persist through 2021, according to IDC. Nonetheless, automotive semiconductor revenues are expected to grow 13.6% year-over-year, analysts note.

“Overall, the semiconductor industry remains on track to deliver another year of strong growth as the super cycle that began at the end of 2019 strengthens this year,” said Mario Morales, Vice President of Program, Semiconductors at IDC.


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